NSEI:JISLDVREQS

Stock Analysis Report

Jain Irrigation Systems

Executive Summary

Jain Irrigation Systems Limited operates as a micro-irrigation company in India, Europe, North America, and internationally.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Jain Irrigation Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-17.6%

JISLDVREQS

0.2%

IN Machinery

1.4%

IN Market


1 Year Return

-76.8%

JISLDVREQS

-13.3%

IN Machinery

2.3%

IN Market

Return vs Industry: JISLDVREQS underperformed the Indian Machinery industry which returned -13.3% over the past year.

Return vs Market: JISLDVREQS underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

JISLDVREQSIndustryMarket
7 Day-17.6%0.2%1.4%
30 Day-39.1%2.5%2.7%
90 Day-42.0%-6.6%-1.4%
1 Year-75.3%-76.8%-11.8%-13.3%4.3%2.3%
3 Year-80.3%-82.1%-2.0%-5.7%20.9%14.9%
5 Year-79.0%-81.3%37.9%30.1%41.2%28.2%

Price Volatility Vs. Market

How volatile is Jain Irrigation Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jain Irrigation Systems undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: JISLDVREQS (₹10.3) is trading below our estimate of fair value (₹52.01)

Significantly Undervalued: JISLDVREQS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JISLDVREQS is good value based on its PE Ratio (3.7x) compared to the Machinery industry average (12.4x).

PE vs Market: JISLDVREQS is good value based on its PE Ratio (3.7x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: JISLDVREQS is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: JISLDVREQS is good value based on its PB Ratio (0.1x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Jain Irrigation Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JISLDVREQS's forecast earnings growth (52.2% per year) is above the savings rate (7.6%).

Earnings vs Market: JISLDVREQS's earnings (52.2% per year) are forecast to grow faster than the Indian market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JISLDVREQS's revenue (14% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: JISLDVREQS's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if JISLDVREQS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Jain Irrigation Systems performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JISLDVREQS's earnings have grown significantly by 31.8% per year over the past 5 years.

Accelerating Growth: JISLDVREQS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JISLDVREQS had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Machinery industry average (13.7%).


Return on Equity

High ROE: JISLDVREQS's Return on Equity (4.2%) is considered low.


Return on Assets

ROA vs Industry: JISLDVREQS's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: JISLDVREQS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Jain Irrigation Systems's financial position?


Financial Position Analysis

Short Term Liabilities: JISLDVREQS's short term assets (₹66.2B) exceeds its short term liabilities (₹48.0B)

Long Term Liabilities: JISLDVREQS's short term assets (66.2B) exceeds its long term liabilities (35.3B)


Debt to Equity History and Analysis

Debt Level: JISLDVREQS's debt to equity ratio (106.6%) is considered high

Reducing Debt: JISLDVREQS's debt to equity ratio has reduced from 168.1% to 106.6% over the past 5 years.

Debt Coverage: JISLDVREQS's debt is not well covered by operating cash flow (3.2%).

Interest Coverage: JISLDVREQS's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: JISLDVREQS has a high level of physical assets or inventory.

Debt Coverage by Assets: JISLDVREQS's debt is covered by short term assets (assets are 1.363370x debt).


Next Steps

Dividend

What is Jain Irrigation Systems's current dividend yield, its reliability and sustainability?

7.81%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Years7.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JISLDVREQS's dividend (7.81%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: JISLDVREQS's dividend (7.81%) is in the top 25% of dividend payers in the Indian market (2.51%)

Stable Dividend: JISLDVREQS's dividend payments have been volatile in the past 10 years.

Growing Dividend: JISLDVREQS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), JISLDVREQS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Jain Irrigation Systems's salary, the management and board of directors tenure and is there insider trading?

16.9yrs

Average management tenure


CEO

Anil Jain (53yo)

27.8yrs

Tenure

₹70,738,355

Compensation

Mr. Anil Bhavarlal Jain, B. Com, LLB, has been the Managing Director of Jain Irrigation Systems Limited since 1993 and serves as its Chief Executive Officer. Mr. Jain is responsible for managing overseas b ...


CEO Compensation Analysis

Compensation vs. Market: Anil's total compensation ($USD989.56K) is about average for companies of similar size in the Indian market ($USD27.28K).

Compensation vs Earnings: Anil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

16.9yrs

Average Tenure

Experienced Management: JISLDVREQS's management team is seasoned and experienced (16.9 years average tenure).


Board Age and Tenure

10.1yrs

Average Tenure

66.5yo

Average Age

Experienced Board: JISLDVREQS's board of directors are seasoned and experienced ( 10.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Anil Jain (53yo)

    MD & Vice Chairman

    • Tenure: 27.8yrs
    • Compensation: ₹70.74m
  • Avdhoot Ghodgaonkar

    Company Secretary & Chief Compliance Officer

    • Tenure: 0yrs
  • R. Swaminathan

    Executive Director

    • Tenure: 23.8yrs
    • Compensation: ₹4.19m
  • Atul Jain

    Joint MD

    • Tenure: 10.1yrs
    • Compensation: ₹70.74m
  • Ashok Jain (67yo)

    Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: ₹70.74m
  • Ajit Jain

    Joint MD & Executive Director

    • Tenure: 21yrs
    • Compensation: ₹70.74m
  • Arun Ajgaonkar

    Senior President of Corporate Administration

    • Tenure: 0yrs
  • Anilkumar Mungad

    Senior Vice President of Internal Audits

    • Tenure: 0yrs
  • Sunil Gupta

    Executive Vice President of QA Food Processing

    • Tenure: 0yrs
  • Narinder Gupta

    COO & VP of Intl. Business Jain Irrgation USA

    • Tenure: 0yrs

Board Members

  • Anil Jain (53yo)

    MD & Vice Chairman

    • Tenure: 27.8yrs
    • Compensation: ₹70.74m
  • R. Swaminathan

    Executive Director

    • Tenure: 23.8yrs
    • Compensation: ₹4.19m
  • Atul Jain

    Joint MD

    • Tenure: 10.1yrs
    • Compensation: ₹70.74m
  • Ashok Jain (67yo)

    Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: ₹70.74m
  • Ajit Jain

    Joint MD & Executive Director

    • Tenure: 21yrs
    • Compensation: ₹70.74m
  • Radhika Pereira (49yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: ₹3.00m
  • Devendra Mehta (82yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: ₹2.35m
  • Ghanshyam Dass (66yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: ₹2.50m
  • Harishchand Singh (69yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹2.35m

Company Information

Jain Irrigation Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jain Irrigation Systems Limited
  • Ticker: JISLDVREQS
  • Exchange: NSEI
  • Founded: 1963
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: ₹6.948b
  • Shares outstanding: 515.66m
  • Website: https://www.jains.com

Number of Employees


Location

  • Jain Irrigation Systems Limited
  • Jain Plastic Park
  • NH No. 6
  • Jalgaon
  • Maharashtra
  • 425001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500219BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1999
JISLJALEQSNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1999
570004BSE (Mumbai Stock Exchange)Differential Voting Rights Equity SharesININRNov 2011
JISLDVREQSNSEI (National Stock Exchange of India)Differential Voting Rights Equity SharesININRNov 2011

Biography

Jain Irrigation Systems Limited operates as a micro-irrigation company in India, Europe, North America, and internationally. The company operates through Hi-Tech Agri Input Products, Plastic, Agro Processi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:48
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.